Here's an Idea
Okay guys read this because the concept is an idea that applies to us all...
A man eats two eggs each morning for breakfast. When he goes to the grocery store he pays .60 cents for a dozen. Since one dozen eggs wouldn’t last a week he normally buys two dozen at a time. One day, while buying eggs he notices that the price had risen to .72 cents per dozen. The next time he buys groceries eggs are now .76 cents a dozen. When asked to explain the rising prices the store owner says,
“The price has gone up and I have to raise my price accordingly.”
This store buys 100 dozen eggs a day. I checked around for a better price and I discovered that all of the distributors have raised their prices. The distributors have begun to buy from the huge egg farms. The small egg farms have been driven out of business. The huge egg farms sell 100,000 dozen eggs a day to distributors. With no competition they can set the price as they see fit. The distributors then have to raise their prices to the grocery stores. And on and on and on. As the man kept buying eggs the price kept going up. He saw the big egg trucks delivering 100 dozen eggs each day. Nothing changed there. He checked out the huge egg farms and found that they were selling 100,000 dozen eggs to distributors daily. Nothing had changed but the price of eggs. Then the week before Thanksgiving the price of eggs shot up to $1.00 a dozen. Again he asked the grocery store owner why and was told,
“Cakes and baking for the Holidays.”
The huge egg farmers knew there would be a lot of baking going on and more eggs will be used. Hence, the price of eggs goes up.
“Expect the same thing at Christmas and other times when family cooking and baking happen.”
This pattern continues until the price of eggs is $2.00 a dozen. The man says,
“There must be something we can do about the price of eggs.”
He starts talking to all of the people in his town and they decide to stop buying eggs. This didn’t work because everyone needed the eggs. Finally the man suggested only buy what you need. Since he ate two eggs a day, on the way home from work he would stop and buy only two eggs. Everyone in town started buying 2 to 3 eggs per day. The grocery store owner began complaining that he had too many eggs in his cooler. He told the distributor that he didn’t need any eggs; maybe he wouldn’t buy all week. The distributor had eggs piling up at his warehouse. He told the huge egg farms that he didn’t have any room for eggs and would not need any for at least two weeks. At the egg farms the chicken just continued laying eggs. To relieve the pressure, one huge egg farm told the distributor that they could buy the eggs at a lower price. The distributor said,
“I don’t have the room for the @*&#% eggs even if they were free.”
The distributor told the grocery store owner that he would lower the price of the eggs if the store would start buying eggs again. The grocery store owner said,
“I don’t have room for more eggs. The customers are only buying 2 or 3 eggs at a time. Now if you were to drop the price of eggs down to the original price the customers would start buying by the dozen again.”
The distributors sent the proposal to the huge egg farms. They liked the price they were getting for their eggs but those chickens just kept on laying them. Finally the egg farmers lowered the price of their eggs, but only by a few cents. The customers still bought 2 or 3 eggs at a time. They said,
“When the price of eggs gets down to where it was before, we will start buying by the dozen.”
Slowly the price of eggs started dropping further. The distributors had to slash their prices to make room for the eggs coming from the egg farmers. The egg farmers cut their prices because the distributors wouldn’t buy at a higher price than what they were selling eggs for. Anyway, the distributors had full warehouses and wouldn’t need eggs for quite a while. Those chickens? They kept on laying. Eventually, the egg farmers further reduced their prices drastically because they were throwing away eggs they couldn’t sell. The distributors started buying again because the eggs were priced to where the stores could afford to sell them at the lower price. The customers began buying them by the dozen again.
Now, transpose this analogy to the gasoline industry. What if everyone purchased $20.00 worth of gas each time they pulled up to the pump? The dealers’ tanks would stay semi-full all of the time. The dealers wouldn’t have room for gas coming in from the huge tank farms. The tank farms wouldn’t have room for the gas coming in from the refining plants. And, the refining plants wouldn’t have room for the oil being off-loaded from the huge tankers coming in from the Middle East. Just $20.00 each time you buy gas. Don’t fill it up! You may have to stop for gas twice a week or more but the price should come down.
Think about it. As an added note…When I buy $20.00 worth of gas, that leaves my tank a little under half full. The way prices are jumping around you can buy gas for $3.15 a gallon one day then the next morning $3.01. If you have your tank full of $3.15 gas then you won’t have room for the $3.01 gas. You might not understand the economics of buying two eggs at a time but you can’t buy cheaper gas if your tank is full of the high priced stuff. Also, don’t buy anything else at a gas station. Don’t give them any more of your hard earned money than what you spend on gas, until the prices come down.
......that is $.42 per mile for my truck.....
